Essay on Rise of Bangladesh’s Textile Trade

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CASE 3: Rise of Bangladesh’s Textile Trade
Zlatko (Zac) Simjanovski

MBA 727-03 (FA12)
Professor WS
November 17, 2012

Table of Content
Introduction............................................................................................................................3
General description of Bangladeshi Textile Industry............................................................3
Central issue of the case analyses .........................................................................................3
Industry's goals overview .....................................................................................................4
Constraints of the …show more content…
Constraints of the problem
Despite the fast-track growth of the textile industry in Bangladesh, the privatization process, low labour and transaction cost there are some constraints to this progress. Initially, lifting quotas was seen as an issue to theireconomic expansion but in practice did not influence much this progressive growth of this industry. On the other side the infrastructure is not sufficient to respond to the growth pace, especially deficiency in power supply. Similarly, roads, railways, ports are not in good shape and continually are affected by the ageing factor as well the natural. Also, the government budget has not benefited from the Privatization, as expected, and as consequence of that the investment in infrastructure is very poor. Also, the dynamic efficiency of privatized companies had small or no net advantage in comparison to the public owned companies as the investment in newtechnology, modernisation or in human capital was little or equal to none. Moreover the political unrest throughout the years, as well lately the increased Islamic fundamentalist movements, recurring strikes and street raids, raised some concern to the investors but still we could read of investments in Bangladesh. (The Daily Star, 2012)
Relevant alternatives to the issue I believe that the following alternatives would maintain the upward trend of Bangladesh’s textile trade: First,
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